• STATS Group


Energy pipelines add billions to Canada’s economy

A new study released by the Canadian Energy Pipeline Association (CEPA) shows that the economic benefits of transmission pipelines add billions to the Canadian economy annually.

Economic impact

The study, the first of its kind in Canada, entitled 'The Economic Impacts from Operations of Canada’s Energy Pipelines', was prepared by Angevine Economic Consulting Ltd. The study details the economic impact that crude oil, natural gas liquids, and natural gas transmission lines contribute to the Canadian economy. According to the report, the industry is expected to add US$ 130 billion to Canada’s gross domestic product over the next 30 years based on current operations. This does not include that the transmission pipeline industry could add to the Canadian economy, if some of the major pipeline projects currently being planned were to become operational.

High income jobs

“Canada’s energy pipelines are an overlooked source of economic prosperity,” said Brenda Kenny, President and Chief Executive Officer of CEPA. “Not only do they add billions to our gross domestic product, they’re also a source of high income jobs for many thousands of Canadians.”

All told, the pipeline industry is responsible for over 25 000 full time equivalent jobs across Canada, accounting for approximately US$ 1.9 billion in labour income in 2012. Of the 25 000 jobs created by the pipeline industry, 30% are located in Alberta, 21% in Ontario, and 20% in Saskatchewan, with the remaining 29% spread across the rest of Canada.

“There’s a perception that only Alberta and their workers benefit from the energy industry as a whole and from pipelines in particular,” said Kenny. “This report clearly shows that the economic benefits of pipelines are spread across the entire country and contribute to the prosperity of all Canadians.”

“Spin-off benefits of pipeline infrastructure”

Not captured in the report are the spin-off benefits of pipeline infrastructure. Upstream, energy producers are able to move more of their product and invest more heavily in expanding their operations. Downstream, Canadian refineries, petrochemical plants and distribution companies generate GDP contributors and provide employment and income. This is due, in great part, to the energy transported by Canada’s transmission pipelines. It is estimated that 20% of the total value of Canadian exports of goods are generated by the transportation of energy products via pipelines.

“Pipelines generate significant spin-off benefits that far exceed the direct investment made in them,” said Kenny. “Our member companies are committed to building and operating a safe, socially and environmentally responsible pipeline infrastructure that will contribute to a strong and prosperous Canada for many decades to come.”

Adapted from press release by Hannah Priestley-Eaton

Published on 18/11/2013


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